SEC asked Coinbase to stop trading cryptocurrencies other than bitcoin before lawsuit

The SEC recommended that Coinbase stop trading all cryptocurrencies other than bitcoin before suing the company for failing to register as a broker, according to Coinbase CEO Brian Armstrong.

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The USA Securities and Exchange Commission (SEC) allegedly asked Coinbase to halt trading in all cryptocurrencies except bitcoin prior to filing a lawsuit against the company for not registering as a broker.

Coinbase CEO Brian Armstrong revealed that the SEC made this recommendation, claiming that they believed every asset other than bitcoin was a security. Armstrong stated that the SEC did not provide an explanation for their conclusion and demanded that online exchange delist all assets other than bitcoin.

The SEC denied making formal requests for delisting, stating that its staff may share views on conduct that raises questions under securities laws during investigations. SEC Chair Gary Gensler has previously suggested that cryptocurrencies other than bitcoin are securities. The SEC and Coinbase have not yet responded to requests for comment.